It's possible to trade profitably on the Forex, the nearly $2 trillion worldwide currency exchange market. But the odds are against you, even more so if you don't prepare and plan your trades. According to a 2014 Bloomberg report, several analyses of retail Forex trading, including one by the National Futures Association (NFA), the industry's regulatory body, concluded that more than two out of three Forex traders lose money.
This suggests that self-education and caution are recommended. Here are some approaches that may improve your odds of taking a profit.
Prepare Before You Begin Trading
Because the Forex market is highly leveraged -- as much as 50 to 1 -- it can have the same appeal as buying a lottery ticket: some small chance of making a killing. This, however, isn't trading; it's gambling, with the odds long against you.
A better way of entering the Forex market is to carefully prepare. Beginning with a practice account is helpful and risk-free. While you're trading in your practice account, read the most frequently recommended Forex trading books, among them
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination, by Michael R. Rosenberg is short, not too sweet and highly admired introduction to the Forex market.
Forex Strategies: Best Forex Strategies for High Profits and Reduced Risk, by Matthew Maybury is an excellent introduction to Forex trading.
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex, by Kathy Lien is another concise introduction that has stood the test of time.
All three are available on Amazon. Rosenberg's book, unfortunately, is pricey, but it's widely available in public libraries. "Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude," by Mark Douglas is another good book that's available on Amazon, and, again, somewhat pricey, although the Kindle edition is not.
Use the information gained from your reading to plan your trades before plunging in. The more you change your plan, the more you end up in trouble and the less likely that elusive forex profit will end up in your pocket.
Diversify and Limit Your Risks
Two strategies that belong in every trader's arsenal are:
Diversification: Traders who execute many small traders, particularly in different markets where the correlation between markets is low, have a better chance of making a profit. Putting all your money in one big trade is always a bad idea.
Familiarize yourself with ways guaranteeing a profit on an already profitable order, such as a trailing stop, and of limiting losses using stop and limit orders. These strategies and more are covered in the recommended books. Novice traders often make the mistake of concentrating on how to win; it's even more important to understand how to limit your losses.
Be Patient
Forex traders, particularly beginners, are prone to getting nervous if a trade does not go their way immediately, or if the trade goes into a little profit they get itchy to pull the plug and walk away with a small profit that could have been a significant profit with little downside risk using appropriate risk reduction strategies.
In "On Any Given Sunday," Al Pacino reminds us that "football is a game of inches." That's a winning attitude in the Forex market as well. Remember that you are going to win some trades and lose others. Take satisfaction in the accumulation of a few more wins than losses. Over time, that could make you rich!
CHICKEN WITH ROSEMARY BUTTER SAUCE
CHICKEN WITH ROSEMARY BUTTER SAUCE
CHICKEN WITH ROSEMARY BUTTER SAUCE — Sauteed chicken breasts smothered in a creamy rosemary butter sauce. Ready in 20 minutes or less!
I know it’s been said before, but you really can’t have too many chicken recipes. Especially chicken recipes like this Chicken with Rosemary Butter Sauce.
This delicious dish can be made in about 20 minutes and only dirties one pot! And a sauce made with butter and cream–how could you possibly go wrong there?
This chicken is nice enough for company, but easy enough for a weeknight meal. My kind of dinner!
I recommend a side of rice, potatoes or pasta to go with the creamy rosemary and butter pan gravy. In fact, it’s not a bad idea to double the sauce so you have some to spoon over your chosen side dish.
Sauteed chicken breasts smothered in a creamy rosemary butter sauce. Ready in 20 minutes or less!
INGREDIENTS
- 4 boneless skinless chicken breast halves
- 4 tablespoons butter, divided
- 1/2 cup chicken broth
- 1/2 cup heavy whipping cream
- 1 tablespoon minced fresh rosemary
DIRECTIONS
- In a large skillet over medium heat, cook chicken in 1 tablespoon butter 4-5 minutes on each side until golden brown and cooked through. Remove to a plate and keep warm.
- Add chicken broth to pan and stir to loosen any browned bits from the bottom of the pan. Add the cream and bring the sauce to a simmer. Continue to cook and stir until slightly thickened, 3-5 minutes.
- Stir in the minced rosemary and the remaining butter until butter is melted. Return chicken to pan for an additional 2-3 minutes. Spoon sauce over top just before serving.
